In the past two decades, China's security industry has experienced remarkable growth. The market demand and industry GDP growth have consistently outpaced national averages. However, due to limited statistical data, the lack of reliable information has hindered government decision-making and strategic planning for industry players. This gap has led to inefficiencies in investment and project execution, creating obstacles for sustainable development. As a result, the emergence of a robust security consulting sector is not only essential but also an inevitable trend, offering vast potential for future growth.
Security consulting involves professionals who apply theoretical knowledge, tools, and industry-specific experience to provide informed guidance to governments, businesses, and system developers. These services cover a wide range of areas, including policy advice for government bodies, strategic planning for enterprises, design and evaluation support for end-users, and specialized audits and supervision.
The development of a comprehensive urban security system is a top priority for the Chinese government as it aims to build a safer and more harmonious society. However, the relatively short history of the security industry in China has led to gaps in legal frameworks and professional research institutions. Without sufficient empirical data or professional models, decision-making often lacks scientific analysis, increasing the risk of errors. Reliable industry data is crucial for assessing current conditions and forecasting trends, yet no authoritative entity currently provides comprehensive tracking or insights. This makes it challenging for policymakers to develop effective strategies and guide industry growth.
Service excellence is key to success in this field. Unlike products, services are intangible and hard to measure, making customer satisfaction a critical factor. Businesses must focus on delivering exceptional service through attention to detail and consistent quality.
Comprehensiveness is another important aspect. Customers today expect more from their investments—seeking solutions that address multiple needs at once. Security providers must offer full-service packages, covering everything from initial consultation and product design to training, maintenance, and system upgrades. By anticipating customer needs and addressing every detail, companies can gain a competitive edge.
Personalization is equally vital. While tailored solutions are important, the real challenge lies in understanding and meeting individual customer expectations. Since user experiences vary widely, companies must pay close attention to small details and adapt their approach accordingly. Many firms now employ dedicated teams to handle customized requests, ensuring that each client receives the best possible service.
Training is a critical component of service delivery. Even with advanced systems and high-quality installations, poor operator performance and staff turnover can undermine the effectiveness of security solutions. Therefore, companies must prioritize training, even when clients do not explicitly request it. This proactive approach enhances customer satisfaction and builds long-term trust.
High-quality service depends on skilled and well-trained teams. Technicians must be capable of solving complex issues, which is the core of service value. For example, some companies invest heavily in R&D and production facilities, enabling them to maintain innovation and product quality. They also establish extensive service networks, such as 26 regional technical centers, and operate 24/7 support systems to ensure timely assistance.
Globally, the most developed security markets show that service revenue accounts for over 40% of total income, indicating a clear shift toward service-based business models. In China, both users and integrators are increasingly recognizing the value of after-sales support, signaling a positive trend for the future.
In 2013, the security industry began to move toward a more service-oriented model. With product prices declining and after-sales services improving, companies were forced to focus on service delivery. Pure product sales could no longer sustain long-term growth. Major players faced a new round of competition, with leading companies consolidating their positions and expanding into both industrial and consumer markets.
Why do many SMEs struggle? As frontline companies expand their product lines and market reach, even in underdeveloped sectors like home security, they can rely on strong financial backing. Remember the DVR price war? Several top-tier companies colluded to drastically reduce prices, putting pressure on smaller firms that depended on low-margin, fast-turnaround sales. Rising labor costs, stagnant pricing, and shrinking orders made survival difficult, leading to closures in many cases.
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